Sydney's tight rental market eases during January

The January rental vacancy rate for the Sydney metropolitan area rose by 0.3% to 1.9%, the largest single increase since July 2010.

All areas of Sydney recorded increases in the percentage of rental properties available, according to the latest rental vacancy data from the Real Estate Institute of NSW. The figures show Sydney’s highest vacancy rates since August 2006.

Inner suburbs (zero to 10 kilometres from the CBD) rose 0.2 to 1.7%; middle suburbs (10 to 25 kilometres from the CBD, rose 0.1 to 2.1%, and outer suburbs (more than 25 kilometres from the CBD) rose 0.4% to 1.8%.

Areas outside of Sydney also experienced a marked increase in available properties, with Newcastle climbing back from 1.1% in December to reach 1.5% and Wollongong experiencing a 0.2% rise in availability to 2.3%.

The overall rental vacancy rate across the Hunter rose by 0.4% to reach 1.5%.

The entire Illawarra region experienced a 0.5% increase allowing the January vacancy rates to reach 2.1%.

However, vacancy rates dropped on the Central Coast (1.4% from 1.6%), Central West (1.8% from 1.9%) and Orana (1.2% from 1.5%).

REINSW president Christian Payne warns that the increase will be short lived and that tenants can soon expect the market to tighten up once more.

"January and February are traditionally peak periods for change in the rental market across NSW as school leavers, university students and families changing jobs or schools settle into new properties.

"Those looking to join the rental market or move properties from March onwards will find that availability could deteriorate sharply," says Payne.